Heineken

Company & Strategy

Company profile
We are a proud, independent and responsible global brewer. Today, HEINEKEN is the number one
brewer in Europe and the number two brewer in the world. We have operations in over 70 markets
globally, which makes us the world's most international brewer. In the last decade we have significantly
increased our exposure to emerging markets, which will be a catalyst for our growth.
We brew great beers, we build great brands and are committed to surprising & exciting our consumers
everywhere.
Factors which make us unique:
Leading developer and marketer of premium beer and cider brands. Led by the Heineken® brand, the
Group has a powerful portfolio of more than 300 international, regional, local and specialty beers and
ciders.
Committed to innovation, long-term brand investment, disciplined sales execution and focused cost
management.
Through "Brewing a Better World", sustainability is embedded in the business and delivers value for all
stakeholders.
A unique, well-balanced geographic footprint with leadership positions in both developed and
developing markets.
Internationally diverse, dynamic, committed and entrepreneurial team of over 80,000 employees and
operate breweries, malteries, cider plants and other production facilities in more than 70 countries.
The passion of the Heineken family remains as strong today as it was in 1864 when we first started
brewing beer.

Our Business Priorities

We are committed to long-term value creation. The HEINEKEN strategy is built around four business
priorities for action. They are designed to enable the Company to win in the marketplace, focus on the
long-term sustainability of our business and continue to delivering growth and shareholder value.

Our Values
 Our values represent what we stand for as a corporate citizen, a business partner and an
employer. They are reflected in We Are HEINEKEN.
 We build true human connections and break down barriers, because we believe great moments
of shared experiences are the best in life.
  We are inspired by consumers to brew the best beers and extend that same passion to all of
our brands, products and activities.
 We are proud of our family history and Dutch heritage and derive from them our
entrepreneurial spirit that takes us to every corner of the world.
 We are brand builders. The Heineken® brand defines and unites us while our many local,
regional and global brands make our portfolio diverse and unique.
 People are at the heart of our company. We see our strength in trust, diversity and progress
 We stand by our values: passion for quality, enjoyment of life, respect for people and for the
planet.
 We always advocate for responsible consumption. We are committed to our communities and
strive to consistently improve the impact we make on the planet.
 We work with our customers and partners to grow together and seek to win with integrity and
fairness.
 And we are convinced that by staying true to these commitments, we create value for our
shareholders.
 We Are HEINEKEN.

Marketing Strategy of Heineken

Established in 1864, the brand Heineken is been operating in more than 170 countries globally. The
brewing company Heineken International produces pale lager beer which contains 5% alcohol by
volume.
Heineken operates with various international and cider brands such as Heineken, Amstel, Desperados,
Sol, Tiger, Tecate, Red Stripe, Krušovice, Birra Moretti, Affligem, Lagunitas, Strongbow Apple Ciders,
Orchard Thieves, Stassen, Bulmers, Old Mout and Blind Pig.
Segmentation, targeting, positioning in the Marketing strategy of Heineken –
Since the company operates with so many sub-brands in beer and Cider product categories so
defining the population based on similar characteristics is essential for providing suitable products to
the respective customer groups. It segments its brands based on Regional, Local and International
Brands and alcoholic and non-alcoholic brands which are suitable for certain age/ group of customers.
Through operating in a large number of countries globally, Heineken uses
selective targeting strategy like focussing on regional markets with its portfolioof brands.
Bringing people closer to each other and sharing their life moments, is what brand has been
positioned itself in the market.
Marketing mix – Here is the Marketing mix of Heineken.
Mission- “To delight consumers, day in day out, with perfect cider and beer brand experiences”
Vision- “To Brew a Better World across the entire value chain, from Barley to Bar”
Tagline-“Open your world”

Competitive advantage in the Marketing strategy of Heineken –

1. Visibility in the market:
The Company has associated itself with many renowned events through partnerships & sponsoring
across different sectors entities such as that of Formula 1, UEFA Champions League, Rugby world cup,
James Bond Spectre. These associations helped the brand in keeping it ahead of its peers and spread
the message of the brand.
2. Wide Product Portfolio:
With the wide portfolio of brands in each products category such as Craft & variety Cider Brand,
International & Regional Brands is what helping the brand in retain its customers and increasing the
share of heart leading to share of mind and share of wallet.
BCG Matrix in the Marketing strategy of Heineken –
Heineken operates through four notable business segments such as Cider Brands, International Brands,
Craft & variety and Global Brands.
The International brands business segment is the key driver of the premium brands which includes
brands such as Desperados, Birra Moretti, Krušovice, Sol, Tiger, Tecate, and Red Stripe. Being the sole
driver globally, the segment is Stars in the BCG matrix.
The Heineken group is the world’s largest producer of Cider, Heineken’s Cider portfolio is Stars in the
BCG.
Craft & Variety, as well as no-alcohol business, is a question mark since the high within category
competition resulted in market saturation and low growth.

Distribution strategy in the Marketing strategy of Heineken –

The Company operates through geographical segments such as Asia Pacific, Africa, Middle East and
Eastern Europe, Americas, Europe. Under the Heineken brand, the Group has a portfolio of 300+ local,
regional, international, and specialty beers & ciders.
The brands of the group are purchased and consumed by customers in restaurants, bars, and retailers
globally. The company uses Local strategy to produce the majority of its offerings in the countries
where it is consumed thereby decreasing the distribution cost and optimizing distribution efficiency.
Brand equity in the Marketing strategy of Heineken –
Heineken has been ranked 30th in Forbes magazine list of Top Regarded companies and it has been
ranked 78th in Forbes list of World’s Most Valuable Brands. The brand has been valued at $ 23 billion
as of May 2017 (market capitalization value method) with assets of worth $ 42.05 billion.
The brand reward and recognize the unique achievements of scientists, Scholars, and artists through
several awards such as Dr H.P. Heineken Prize for Biochemistry and Biophysics, Dr. A.H. Heineken Prize
for Medicine/ Art/ History, Heineken Young Scientists Awards.

Competitive analysis in the Marketing strategy of Heineken-

Reducing carbon emissions through 138,000 green fridges globally, third-party logistics tie-up for
distribution like the one with Birra Moretti in Australia, are some of the competitive assets company
has built upon.
SAB Miller, AB In Bev, Carlsberg, Tsingtao, Yanjing etc. are some of the competitors of the company.
Companies operating in the market compete on the basis of availability, alternatives to products, SKU’s
like that of bottles, cans, and kegs, reach in a number of countries etc. The company have 12% market
share globally.

Market analysis in the Marketing strategy of Heineken-

The alcoholic beverages market for Beer is valued at $ 5, 93,024 mn in 2017, and projected to reach $
6, 85,354 mn by 2025.
From 10 breweries controlling the market in 2004 the market dynamics have changed and now it is
been controlled by five major players who control 50% of the world’s beer market.
Changing lifestyle, Cosmopolitan culture, series of acquisitions by the breweries like companies around
the world, changing the perception of the consumers for the alcoholic drinks are some of the factors
driving the market globally.
Customer analysis in the Marketing strategy of Heineken–
In the Retail segment majority of its customers is in the age group of less than 34 years. The brand is
more popular in the Asian markets. The brand serves customer segments such as Retail and B2B.
It makes its offerings to Restaurants, Hotels Chains, Bars, and Super Market Chains in B2B Segment.
This segment is served by the Sales team of the company or national distributors.
MARKETING STRATEGIES OF SMART AND PLDT INC.

MARKETING STRATEGY OF SMART AND PLDT INC.

OVERVIEW:

One of the strategies of Smart communications its way in FINDING A UNIQUE MARKET POSITION
For the record Globe Telecommunications (Globe) was the first Telco that have been established in the
market way back 1994 and in 1999 Smart response in more untacky way of services offered. And it’s a
opportunity to start later coming late in the market gave them a strength to locate and classified their
position in the market.
Situation data sample:
Smart’s President and CEO, Mr. Napoleon Nazareno. One of the key challenges that the company
wanted to address early on was the serious lack of access to telecommunications in Barangay is the
second smallest political unit for local governance in the Philippines, sitio being the smallest.
– Source: PLDT MD&A

Smart Open for partnerships and Latest innovations and Updates in their services
Smart Communications in Partnership with Thuraya Launches Satellite Devices and Accessories to
Power Coordination
Smart Communications in partnership with mobile satellite communications company Thuraya, has
launched satellite devices and accessories to power coordination during emergencies and disasters.
Smart Communications Announces Latest Version of the Solution for New Generation of Enterprise
Customer Communications
– Above are the recent partnerships Of Smart as Pldt inc. Subsidiary companies.
One useful way to consider a marketing strategy is to know:
Strengths, Weaknesses, Opportunities, and Threats:
The SWOT Analysis
It is vital and important to a company to conduct or have a deep knowledge and study/analysis about
its strength, weakness, Opportunities and threats it is wherein good Marketing strategy will be
produced. Smart communication operates as a subsidiary of Philippine Long Distance Telephone
Company in the present changed in PLDT INC.
Strength
– Widely Known Brand Name
– an instrument that the company (SMART) will be able to differentiate its product/service offerings to
competitors. It is no doubt that everyone knows the brand name of this networks.
– Cutting-edge fiber-optics technology (e.g. 3G, 4G, LTE)
Because of technology innovations and re occurring development, the factors of having huge demand
for new mobile services such as 3G, 4G, and LTE, smart communications and other competitors are
expanding their play by offering these cutting-edge fibre-optics services to cater the demand of their
markets.\
– High Growth Rate
The growth rate of the telecommunication industry in the Philippines is considered high
– Huge Demand of Telecommunication subscribers
The demand for telecommunication products and services is considerably high in the Philippines.
According to the International Telecommunications Union (ITU), the United Nations specialized agency
for information and communication technologies, as cited in the online article alliance.com.ph (2014),
there were 87.3 million mobile subscribers in the Philippines
-wide range of product services
-strong technology adaptation
Weaknesses
– Poor Telecommunication Infrastructure
The infrastructure needed by telecommunication companies entails huge amount of investment. One
of the sad facts about telecommunication infrastructure in the Philippines is its slow internet
connection, a service also provided by the two players in the market. The average webpage loading
speed on desktops in the Philippines was 15.4 seconds, the second slowest behind 20.3 seconds of
Indonesia in a Google study based on the report of Bloomberg, an international news agency
(Mendoza, 2012). In a survey by OpenSignal, a company that created impartial coverage maps of
mobile networks, the Philippines was identified as the poorest and slowest LTE (Long Term Evolution)
broadband Internet access and coverage in the globe (Luces, 2014).
– Late Adopter of New Technology
In 2012, 63% of telecommunication companies across Asia had offered 4G mobile data services. This
move proves that mobile, Internet, and LTE are the most vital things in the telecommunication industry
in the continent. It is true that LTE adoption in developed nations such as Japan and Korea is doing
well but emerging markets including the Philippines is at a slow pace. With approximately 34.6 million
LTE subscribers in Asia-Pacific region of the aggregate 3.45 billion subscribers in the region in the first
quarter of 2013, 4G is far from commonplace (Magdirila, 2013). The LTE technology was commercially
introduced in December 2009 by TeliaSonera in Norway and Sweden and came to the U.S. market in
2010 (Pica, 2013). In the Philippines, it was only in 2013 when LTE was introduced by SMART
Communications and Globe Telecom (Noda, 2013).
Opportunities
– New Technological Products Available in the Market
The existence of new mobile phone units such as smart phones and Iphones entails a huge
opportunity for telecommunication companies to offer services for users of these new mobile phones.
The advancements of mobile phones today require new services such as 3G, 4G, and LTE. These
services can be provided by telecommunication companies. In 2012, the Philippines was considered the
fastest-growing market for smart phones in Southeast Asia according to GfK, a research firm in
Singapore.
– Value-Added Services
Aside from typical mobile service of text messaging and phone calls, the growing number of
smartphone and Iphone users seeks for other advanced services such as 3G, 4G, and LTE. With this, the
telecommunication companies have the opportunity to provide these services.
– Increasing Demand for Mobile Banking
The demand of consumers for mobile banking services is also increasing this poses an opportunity for
telecommunication companies to offer this service. According to Juniper Research, an international
mobile telecommunication research company, over one billion mobile subscribers will be using their
mobile phones for banking by the end of 2017. It was also predicted in 2013 that the mobile banking
users will register at 590 million (The Philippine Star, 2013).
-dependence of suppliers/contractors
-new product launches broadband
-strategic growth development
-increasing demand for 3G
Threats
-rapid technological change
-high competition
-global economic scenario
-demand for mobile
– Regulation of the Telecommunication Industry by National Telecommunication Commission (NTC) In
the Philippines, the government through NTC regulates the telecommunication industry. The heavy
regulation imposed by NTC means a major threat for telecommunication companies.
– Heightened Competition
The advent of digital wireless and a multiple increase in the allocation of spectrum in mobile
communication really heightened the war in the telecommunications industry. It is evident that
technological advancement and competitive development provided an increasing complex array of
networks offering competing and complementary services. The “war” between SMART
Communications and GLOBE Telecom is becoming stiffer. In 2012, both players claimed to be number
one in the postpaid segment – SMART Communication by the number of subscribers while GLOBE
Telecom by revenue per subscriber in the first three months of 2012 (Viconti, 2012).
REACHING THE MARKET OF THE MAJORITY
One of the key factors of success of the company its ability to understand the needs of its target
market. The primary assets in reaching the low-income market included affordability of wireless
products and service
Changing the mindset of the Filipino’s that their services are for everyone offers affordability and
giving Filipino’s immense opportunities to utilize technology new innovations (eg:
smartphones,ipad,Tablets etc..) through their wide range and various promo’s services
BELOW ARE SOME OF THE SERVICES THAT SMART OFFERS:
Smart Load: Connecting people in massive proportions May 2003, Smart Load was launched. Smart
Load allowed millions of poor Filipinos to gain access to cellular phone services
(as of December 2006, almost 50% of the Philippine population had wireless phones, and over 50%
were Smart subscribers).
Through Smart Buddy, the company continuously developed a series innovations directly for the low-
income customers.
Smart PasaLoad: designing small portions pre-paid airtime
Capitalizing on the unique Filipino culture of sharing, the company further revolutionized access to
airtime by launching a new product in December 2003, called Smart Pasa Load (pasa translates to
“pass on”). With this service, one person could buy airtime and share it with friends and family in units
as low as
PESTEL Analysis
28. Primarily, the company started their strategy by making the brand more profitable. This is to build
a strong financial foundation. The main changes that had happened are from the accounting practices
of the company. During the said changes and process of restructure, there are different political factors
that might be considered. One of this is the environmental issues. As of now, more and more
individuals and organizations are focusing on different issues regarding the environment. The fact that
the company will be outsourcing from other countries, there are different international as well as local
laws that must be considered in order to maintain the continuous process of the development. The
trade restriction and tariffs are also another of the most important political factors that must be
considered. This is due to the fact that the company already followed the strategy of Adidas and Nike
in outsourcing their production in Asia. The primary reason for outsourcing of production is because,
most of Asian countries offer lower labor cost and other taxes compare to Europe and America. In
terms of political stability, due to the fact that the company is a multinational company that produce as
well as sell their products in different parts of the world, there different political issues and events in
other local partners that can affect the overall performance of the company. PESTEL Analysis-Political
Factors
29. The said situation in the political factors, are somewhat connected with the different economic
factors that might affect the development process of the company. Primarily is the situation of the
home economy or the economic situation of Germany, in terms of monetary issues, stock exchange
and the likes. The economy trends of happenings in the home economy are also important, so as the
economic situations and trends of the partner countries. This is due to the fact that, this political factor
has a great impact to the social mentality of the possible customers. The different employment laws in
different countries must also be considered, this is due to the fact that different countries has their
different cultures that might affect their beliefs as well as regulations regarding the human resource
aspect of any company. PESTEL Analysis-Economical Factors
30. Ethical issues pertain to the corporate social responsibility or CRS of the company. It is the activity
that helps the company to connect with the different ethical values, transparency, human resource
relations, compliance with legal requirement as well as their respect for the communities in which they
operates and works PESTEL Analysis-Social Factors strategy it is important to use fashion and role
models that will help the brand to spread and rise brand awareness to the possible customers. The
image of the models of the brand is also important; this is due to the fact that those artist or individual
can be considered as part of the brand itself.  It is also important for the company to consider the
change of customer behavior as of now. More and more customers are oriented towards different
high-value and lifestyle-oriented products. It means that more and more people are availing luxury
products.  The fact that more and more people are into sports is a big chance or advantage for the
company, because there will be a huge market for them. Another important thing is that sport is
considered as one of the most important sector in the tourism industry, which considered as the most
successful industry nowadays. On the other hand, sports are also considered as a form of exercise, for
those who wants to have fit and healthy body. 
31. In terms of the technological factors, it focuses on the series of R& New Inventions: Mexican
market is the growing and well established market so many companies wants to enter in to the market
and earning a lot. So they doing something different to the local company so they always give better
and upgraded product compare to the local company so it's always effect to the company that how
can they give the new technology to the customer and convince then to use this technology. Etc. Wi-
Max and 3G PESTEL Analysis-Technological FactorsD activities as well as applications of automation
and new technologies, most especially those that are connected to the Internet. Another important
thing that might affect the development is the maturity of the technology; this is due to the fact that
technology is considered as restless in terms of development. Furthermore, the global communication
is also another important aspect, this is important because the company is operating in different part
of the globe. It is also important to consider the different laws like the intellectual property issues.
32. Each telecommunication company should be committed to following the most stringent
environmental compliance laws applicable to their operations. When conducting operations abroad,
they should abide by U.S. environmental compliance laws if they are more rigorous than the laws in
the country where they are conducting business. AT& TelecommunicatioT operating companies
had one significant environmental compliance- related enforcement action (defined as those actions
that resulted in sanctions equal to or exceeding $100,000) in 2014. n companies should adopt an
Environment, Health and Safety (EHS) Management System based on the principles of International
Standards Organization (ISO) 14001 and Occupational Health and Safety Assessment Series (OHSAS)
18001. PESTEL Analysis-Environmental Factors
33. Broadband deployment policy objective: – Broaden the deployment of broadband technologies –
Define broadband to include any platform capable of transmitting high-bandwidth intensive services –
Ensure harmonized regulatory treatment of competing broadband services – Encourage and facilitate
an environment that stimulates investment and innovation in broadband technologies and services
PESTELAnalysis-Legal Factors There are a number of agencies concerned with telecommunication
policy: – The National Telecommunications and Information Administration (NTIA) – The Federal
Communications Commission (FCC) 
34. Porter’s Five Forces
35. The rivalry among AT&T and its competitors is easily some of the most cut throat of any industry.
The telecommunications industry is saturated, virtually every American has a cell phone all the way
down to 6 and 7 year olds; the only customers these companies are attracting are customers who are
with a different carrier. There have already been a few mergers and acquisitions of carriers, AT&T was
once Cingular back in 2004, Sprint acquired Nextel in 2005, Verizon acquired Alltel in 2009 and AT&T's
failed attempt to acquire T-Mobile in 2011. Rivalry between existing firms is extremely intense. Porter’s
Five Forces- Degree of Rivalry
36. AT&T supplies its own data and builds out its own networks. It does require some cooperation
from the phone companies to sell its phones but AT&T has the upper hand in these business
negotiations due to its extensive customer base. But to carry the iPhone, AT&T does pay Apple a
generous percentage of its revenue from iPhone customers data plans. The bargaining power of
suppliers for AT&T is extremely low. Porter’s Five Forces- The Bargaining Power of Suppliers
37. On one hand you have customers that do sign two year contracts and if they decide to break that
contract there are going to be exorbitant fees per phone for the cancellation. But on the other hand,
when customers are out of contract they can demand free phones, lower and special rates, free
minutes all for signing another two year contract with AT&T. As you can see it really depends what
part of the spectrum the buyer is on at that moment in time to determine the bargaining power they
have. The bargaining power of buyers for AT&T is moderate. Porter’s Five Forces- The Bargaining
Power of Buyers
38. This threat is extremely low because: high capital requirements, government regulations, building
up a brand name, patents, geographical location, technology and building relationships with phone
handset manufacturers and customers; this list can go on and on. AT&T does not need to worry
about new firms entering this market. The threat of new entrants for AT&T is extremely low. Porter’s
Five Forces- Threat of New Entrants
39. For the most part all four competitors offer the same fundamental services, which are talking,
texting and web surfing. What does help limit this force is the somewhat high switching cost of
breaking a contract, activation fee, limited number of competitors, and that two of the three
competitors have inferior service compared to AT&T and its network. This is one of the most
important forces AT&T needs to keep a watchful eye on to maintain its competitive advantage. The
threat of substitute products and services is fairly high for AT&T. Porter’s Five Forces- Threat of
Substitutes
40. Value Chain Porter 7S McKinsey BCG Matrix Internal Analysis
41. General administration HR management Technology development Procurement
OperationsInbound logistics Marketing and salesOutbound logistics Service AT&T has quite a good
management that has continually increased earning for the company. AT&T human resources has a
never ending job on hand. AT&T has a great R&D department, helping create one of the fastest
networks in USA. AT&T has great relationships with wireless equipment makers. AT&T does not have
inbound logistics for transporting raw goods. They ship phones to stores to be sold via UPS. AT&T
helps design the fast 4G network out today. Placing Cell towers around cities and states to deliverthe
most wide spread and fastest network possible. AT&T spends a lot of money on advertisement AT&T
provides service updates for customers phones, as well as physically services customers phones in the
stores. Value Chain Analysis
42. 7S Mckinsey Analysis- Structure
43. Ed Whitacre, former chairman of the board and chief executive officer of AT&T , did a great job
of acquiring and assembling a terrific set of operational assets, and each of the companies had its own
culture, its own personality and ways of doing things. for those assets to perform at their optimal level,
they needed to blend into a single identity and culture – a consistent way of thinking about things, a
consistent style of execution. They intend to be ‘One AT& They have a close-knit senior executive
team. They know each other, spend time together, work together and, as a result, they have
confidence in one another. There’s trust that the next person will do the right thing, and there’s trust in
each other’s ability to execute and play their position. That kind of trust helps you move quickly; it
increases your speed. When it’s absent, you can see it – more checks, controls and processes. That’s
bureaucracy. Building a team where there’s a high level of trust is really important. 7S Mckinsey
Analysis- StyleT.’”
44. AT& Leadership Development Program (LDP) is a two year rotational program for recent
bachelor and MBA graduates with outstanding leadership potential. Established in 1988 LDP is ATT
expends a significant amount of resources to create several major programs versed in Leadership,
Management and Business Learning: &T’s flagship leadership development program. The goal of the
program is to develop competitive leaders with the skills and experience to perform well in various
positions and organizations across the company. Rewards include career development, exposure to
key areas within AT& The Financial Leadership Program (FLP) is designed to give individuals the
breadth and depth of business experience necessary for a successful career. FLP participants are
rotated through high profile decision- making positions in which they work directly with key members
of the senior management team of AT IT MATREX (Management Transition Exchange) is the
Information Technology hiring program for high motivated individuals. The group consists of recent
college graduates in the areas on client/server mainframe and Web development. T, frequent
developmental feedback and accelerated career growth for successful participants &T Finance. This
program is centered on entrepreneurial thinking. 7S Mckinsey Analysis- Staff
45. AT&T University: AT&T University helps them accelerate growth, foster innovation, and develop
leadership capabilities at every management level. Since the opening of AT& ATT University, more
than 100,000 managers have participated in a robust blend of onsite and virtual classroom sessions. &T
Connect to Success: This mentoring program is designed to connect selected managers in fruitful
mentoring relationships and foster leadership training opportunities for all, including women and
people of color. AT& ATT Connect to Success provides a broad range of managers with the ability to
deepen their networks, develop and strengthen a variety of areas, and broaden their collaboration
skills. & Career Movement: Management and occupational employees can nominate themselves for
job openings throughout the company. Hiring managers are provided with a diversified pool of
qualified job candidates. 7S Mckinsey Analysis- SkillsT Self-Development Resource Center: This virtual
resource center supports all employees in developing strategies to remain competitive in their work
environment.
46. AT&T integrated Global Enterprise Management System (iGEMS) is a sophisticated, end-to-end
global network management platform that enables AT& Providing the management infrastructure of
an ATT to monitor and manage the performance of your networks, servers and applications in a
proactive, predictive and preventative manner. &T Enterprise Hosting solution, whether in an AT& Not
only does iGEMS provide valuable data for ATT Internet Data Center or on a customer’s premises,
iGEMS allows highly qualified operations teams to quickly and efficiently diagnose issues or predict
potential problems and take corrective actions. &T support teams, but iGEMS also feeds data to
AT&T’s award winning BusinessDirect® Portal for customer access to crucial data about their
environment. Customers can view near real-time and historical performance reports on their servers,
operating systems and applications. 7S Mckinsey Analysis- System
47. AT&T Wireless has successfully executed it strategy growing its Operating revenue by 14%.
Through the integration and cleanup of legacy AT&T wireless and Cingular Wireless, churn has been
reduced to 1.7%. This is a direct indication of improved value and service to its customers. Contrary to
Sprint-Nextel the merger of networks was the best solutions due to the similarities in the GSM
technology. The strategy to enter into a two year exclusive deal with APPLE to market and sell the
iPhone has proven successful. Even with the EDGE network the satisfaction of the iPhone has
differentiated AT&T from its competitors. The stakes here have been raised and AT&T will look to see
even more competition from Verizon, Sprint-Nextel and T-mobile. 7S Mckinsey Analysis- Strategy
48. AT& AT Guided by a rich heritage and time-honored values of honesty, integrity, openness and
respect, they are driven to deliver on their promise to always do the right thing. T is committed to
acting responsibly in every way and to improving the quality of life in the communities it serves. &T’s
philosophy toward corporate social responsibility reinforces a commitment to serving their customers,
stock- holders, employees, suppliers and communities with attention to quality, care and value. A
central component of their philosophy is AT& ATT’s insistence on behavior that is consistent with
good citizenship on a global scale. &T’s global citizenship commitment encompasses good corporate
governance; innovation; community engagement; volunteerism and philanthropy; diversity and
inclusion; and environment, health and safety. 7S Mckinsey Analysis- Shared Value
49. Broadband services Wireless services Smart Phones TV cable services BCG Matrix
50. SWOT Analysis
51. AT Extremely capable network capacity, both physical (fiber optics) and wireless (including a
growing 3G network).  Broad portfolio of complementary products and services (wireless
communications, local exchange services, long-distance services, data/broadband and Internet
services, video services, telecommunications equipment, managed networking, wholesale services, and
directory advertising and publishing).  World's largest communications holding company by revenue.
 Largest provider of broadband in U.S. &T Wireless exclusivity with Apple's iPhone. S.W.O.T.
Analysis-Strengths
52. AT& Balance sheet -- company more leveraged than competitors within the industry. S.W.O.T.
Analysis-Weaknesses Company obligations and liabilities from old business unit spin-offs. 
Increasingly more price-competitive market in both retail and wholesale markets. T’s wireline voice
business has been on a sharp decline in recent years. Total voice revenues have decreased 2.28 billion
since 2012.
53. AT& ATT plans to pursue initiatives that will expand their wireless spectrum. By continuing to
aggressively expand their spectrum they will be able to reach more people and therefore grow their
customer base. & Further industry growth with 4G technology. S.W.O.T. Analysis-Opportunities
Emerging markets/global expansion.  Wireless growth, particularly through its partnership with
Apple/iPhone.  Further industry consolidation (acquisitions).  By increasing their cloud offerings
they can expand their market share in the growing cloud computing market. This is a market that is
expected to generate 420 billion by 2017. T has the opportunity to invest in growing and enhancing
their wireless and wireline IP broadband networks. This would allow them to keep up with customer
demand for high-speed Internet access and new mobile, applications and cloud services.
54. Reliance on iPhone gives Apple an upper hand in brand visibility. S.W.O.T. Analysis-Threats
Weather damage to antennas and transmission lines.  Price competition within industry pressuring
margins.  Emerging technologies -- falling behind smaller, more nimble companies and operators. 
Increasingly ferocious competition in the wireless arena.  There is fierce competition with other
wireless providers. The U.S. phone market has become nearly saturated. Over 97% of the U.S.
population lives in an area with at least three mobile telephone operators. 
55. 03 Strategy Implementation
56. Low Cost: ATStrategy Analysis 1 MASTER STRATEGY & Differentiation: ATT is adequate in this
regard and offer competetive pricing to numerous services it offers. & ATT‘s exclusive agreementto
market and sell iPhone utilizationof its vast spectrumto offer video conferencing service 5 PEOPLE
STRATEGY & AT The Financial Leadership Program (FLP) 3 OPERATIONAL STRATEGY  IT MATREX
(Management Transition Exchange)  Leadership Development Program (LDP) T expends a
significant amount of resources to create several major programs versed in Leadership, Management
and Business Learning: & AT Branding/Promotion 4 TECHNOLOGY STRATEGY  Switching Costs 
Channel Exposure  Mix Intensity  Geographic Coverage T has developed an MSOC (Management
System Operational Control) process to ensure efficient reaction times to customer care and the
demands of the system performance. 2 MARKETING STRATEGY &T can leverage a significant amount
towards is data services in Enhanced GPRS (EDGE) and its High- Speed Downlink Packet Access
(HSDPA) The Master Strategy for AT&T wireless is to be the only telecom provider their customer
would ever need by connecting its customers anywhere – anyway.
57. Sustainability Create Operational Excellence.  Enhance Customer Experience.  Generate
Growth Through Innovation. Strategy Themes
58. AMERICAN TELEPHONE AND TELEGRAPH COMPANY'S BALANCED SCORECARD Critical Success
Factors Objective Measure Target Initiative Financial Revenue growth Annual growth in sales + 15%
fiscal year end 2015 New products/services Reduce Costs Market share by region New customers
Markets and customers - 15% fiscal year end 2015 Pricing strategy Cost of production Improve product
mix Annual expenses Increase revenue productivity Reduce operating expenses Customer Market
share Customer retention Reduce agent turnover by 20% end of fiscal 2015 Retain current sales agents
New customers Maintain relationships with customers, suppliers, and distributors Product/service
offerings Brand image and reputation Internal Process Innovation Customer needs 2 new products
fiscal year end 2016 Cross-departmental sharing of informationNew products Learning and Growth
Employee Employee turnover - 30% fiscal year end 2015 Access to training materials retention Access
to sufficient information Build relationships with employees Balanced Score Card
59. Critical success factors (CSF) CSF Revenue Growth Costs Reduction Market Share Innovation
Employee Retention
60. Critical Success Factors (CSF) Revenue Growth is important to AT&T because it is indicative of how
fast the company is growing or expanding. It shows the annual increase or decrease in sales growth.
Revenue growth is also a performance measure that investors use to value the company. A continually
growth in revenue means that AT&T’s net income will also grow proportionately to revenue growth.
Cost Reductionfor AT& T will help stabilize or increase cash flow. Cash flow is a very important asset
because it shows resources and uses of the company’s cash. It is also a measure to identify cash
deficits and opportunities. And it is useful in decision making as it relates to the profitability of the
company, the company’s financial condition, and how well the company is using its resources. AT&T’s
reduction of costs directly impacts cash flow and will help the company determine its working capital
requirements. Market share is important to AT&T because it shows the percentage of the market that it
holds, and it shows how well its products are being received in different regions. Market share also
helps in determining consumer demand. By determining consumer demand, new consumer needs are
identified which enables AT&T discover opportunities to fill new needs of consumers, and acquire
more market share.
61. Critical Success Factors (CSF) Innovationis important to AT&T because the telecommunications
industry is very competitive with opportunities for global expansion. Because of advanced technology,
consumers are demanding new features, better services, and lower prices. Revenue growth is
dependent on sales; therefore AT&T must create value for customers by creating new products and
increasing or amending product lines and services. Employee retention is vital to AT&T because it
lowers expenses, helps attract quality new hires, and it enhances productivity and employee morale.
High employee turnover increases recruitment and training expenses of the company. Employee
retention also boosts the image and brand of the company